Real Estate Update
For Retirement Communities
Disclaimer: Nothing from the following real estate update articles should be considered advice or opinion. Please consult with your local Realtors, financial advisors and other professionals. This website is for information only. Real Estate Update: March 2011 Here is a video interview with the National Association of Realtors on Realtor TV that sums up the current real estate market very well: Please always consider your own situation and check with local experts before making any real estate decisions. This is an information only website. Real Estate Update: November 2010 The Future of Home Ownership Some things work in our society and some things don't. Owning your own home has been a subject of pride for many. But there have also been some real benefits to owning your own home. These benefits seem to be "attacked" lately much to the sadness of homeowners. Owning a home is still your best investment--will it still be in the future. I hope so. However, my senior apartment page is very "hot" right now. Many people are more wary of buying again especially since the future is so unknown. There were always things in our American way of life we could depend on and home ownership was one of them. But fewer people are buying or are able to buy. If it took you 2 years to sell your home and then lost $100,000 or more in equity, you may not be too anxious to jump back in.(Although that deficit may have been made up on the new home purchase if it also had lower prices.) The real estate market has had other significant issues affecting it, one of which is foreclosures. When there are fewer foreclosure sales, there are more new home sales. There are still plenty of foreclosures but the market for them has slowed recently due to paperwork problems at the banks, and this has helped the new home market. More people are now buying new homes so that they don't have the problems they may encounter when buying a foreclosure. Interest rates are still excellent and should continue so for the immediate foreseeable future (but check with your local experts). Home prices fluctuate--price increases in some areas and dropping prices in others. Will they continue that trend. Maybe. Should you buy now is the question on every retirees mind. Some areas it is better to buy than rent. Some areas better to rent than buy. Certainly cities where prices are high for housing are generally better to rent. But places like Florida, with the low prices one finds there now, it is generally better to buy. This, of course, depends on other variables like your personal situation so please consult with the local experts and your financial consultant. But the uncertainty of things is what is holding back American's decisions on every front. But when retirees finally move out of their long time home, the benefits and lifestyle of over 55 communities, are just too attractive to ignore. There are also more Visit Programs being offered by communities. So if you have a few days off, you might want to go and look at these communities and stay in their accommodations. Del Webb has some special offerings now. Del Webb Getaway Like I said, never has it been harder to decide whether to buy or rent. It used to be so easy to make that decision. The decision, as always, you must make on your own after weighing all factors. Also, buy vs rent calculators may be helpful. Real Estate Calculator Please verify all information on Real Estate Update and consult with your local real estate experts. Real Estate Update: July 2010 Will Home Prices Ever Go Back Up Again When you've been in the real estate profession as long as I have, you begin to see cycles--and every time the sky is falling, guess what, no matter how bad the talk is, real estate always comes back. But will that happen this time--of course, it will. The question is when. When the foreclosures dry up and that may be awhile. There have always been foreclosures but people were never really aware of them or how to go about buying them. They are becoming more aware now. They are buying them up faster than new homes. This competition for new home builders has slowed construction of new homes a bit--sales and construction are both down since the homebuyer tax credit expired in April. The tax credit accomplished getting more foreclosures sold and that is a good thing. While it cost taxpayers money, and can't be extended indefinitely--it helped when foreclosure rates were high and the real estate market was sluggish. But what now. A good site for checking on how many foreclosures are in your area is Realty Trac. Sales have come down since the tax credit ended. Homebuilders are slowing starts. They need to be competitive with foreclosures so now we see more incentive offerings coming out again since sales have slowed. Some of us sell at the best time to sell and some of us aren't lucky enough to do so. We either sell before or after the best time and lose money. I wish I had sold my home in 2006, at the height--my home has fallen in price substantially since then. I knew better--just didn't feel like moving. That isn't the way to get rich is it. Anyway, here we are with too many foreclosures, an economic recession and no more tax credits. (Those who bought before June 30th, now have an extension to September to close on their sale to have the tax credits and the military tax credit has been extended.) This at a time when interest rates are so low, home prices are falling--timing--it's a good thing to have. Our communities are competitive--just look at the adjusted prices, incentive offerings are incredible, new energy features are more abundant, and there is nothing like a brand new home. Real Estate Update: April 2010 Tax Credit Going Away--but California gets a new one The most important thing happening now in real estate is the fact that the Homeowners Tax Credit is going away soon. You must be in contract by April 30, 2010 except for qualified military which is extended. Extension of the tax credit is not expected. The important thing is how the real estate market will be affected after there is no more tax credit. We will have to wait and see. Foreclosures continue. California is issuing a similar state tax credit which will take place the day after the federal tax credit expires and continues in 2010. California Tax Credit for 2010 Interest rates remain relatively low. Purchase your new home now to enjoy the rare tax credit before it expires. Real Estate Update: March 2010 Real Estate Brokers--Some Better than Others-- This real estate page has never been very popular, I'll admit. I don't blame people for not wanting to flock to this page. It is a page not filled with many facts. My main pages are factual and detailed information. This is what people like on the internet. Being a Realtor isn't my main game anymore. I put my license "on ice" a couple years ago when the market got so bad and I was going in another direction. I like doing this website much more. Although I loved real estate, and I think I was good at it, I don't believe in scattering oneself too much. I feel very focused now on doing my websites. But, unfortunately, I am not sharp as a tack in matters pertaining to current real estate trends. It is impossible to do everything. I attribute my expertise in that area before to my favorite Broker of all time who was fantastic and always current to the minute. His talks at our weekly meetings was very authoritative and informative--he made sure we were always on top of our game--I sure miss it. My advice to anyone seeking to get into real estate would be to choose an office based on who the Broker is. Some are just better than others. I would love it if he did this column. I don't write this column that often because I want something to be perfect, and, of course, it isn't. You will have to take it as it is I'm afraid--and not too seriously. I don't want to pretend to be something I'm not. Always consult with your local Realtors for advice and opinion. In March 2010, it seems we are in the sweet spot for real estate--low interest rates, lower home prices, builder incentives, government tax incentive (going away soon), buyers market--yet the public generally still feels a bit uneasy about buying. There is talk of interest rates rising. What goes down eventually does go back up. If I knew I was going to buy this year, now may be a good time rather than later on. Any movement in interest rates, has a strong effect on the real estate market. Later on just seems too far away to project anymore. Do what is best for your personal situation, consult with experts, and look at the now which seems pretty good. Real Estate Update: November 2009 The buying momentum and upbeat market continue. I think it will probably be strong for the rest of the year due to the $8000 Federal Homebuyer Tax Credit extension and expansion. The Tax Credit was a success in 2009 and with the expansion may continue to help the economy. No one knows for sure if the tax credit is the reason for the increased buyer interest this year. Remember at the beginning of the year, we wanted to know what would happen--would prices fall further. Well, they did, in most areas, but to counter balance that, there were more homebuyers out there and more sales--so some good and some bad. The recent upbeat market is probably the result of a combination of low interest rates, lower home prices, pent-up demand, and the 2008 $8000 tax credit. Here is a good explanation of the extended and expanded 2009-10 Homebuyer Tax Credit NAHB Tax Credit Fact Sheet. Even if you do not qualify for the Tax Credit, having more homebuyers in the market, will help anyone trying to sell a home. On average, home prices have dropped further in 2009 although sales have increased, depending on area. What will happen in 2010 is the topic on everyone's mind. Many think that 2010 will be much the same as 2009 with further drops in home prices. However, I have actually seen prices rise in some communities so check with local Realtors. See my new Expert Interview with Ted Clifton, award-winning builder, on
"Saving Home Energy Begins at Home with Green Building"
You can also find the link to this article from the Home Page. This is the first in a series about Saving Energy and Green Building. Should you pay the extra costs to have a green home--this article may help you decide.
Some outstanding incentives and deals are coming up for you at retirement communities with year-end closeouts. Builders are anxious to show more homes sold before year-end. Be sure to look out for these or ask about them at your favorite retirement community now.
This is the time of year when I wish to thank you so much for visiting my website. To you I wish the happiest of holidays. If you are moving into your new retirement home, congratulations and I wish you the best. If you are still in the planning stages, be sure to visit the great retirement communities in your preferred area and participate in the many Holiday activities they are offering now.
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Real Estate Update: October 2009
A few things as a reminder: the $8000 tax credit for first-time homebuyers expires Nov 30, 2009 -- there is some talk that it may be extended but no one knows as yet if that will happen. If it does, I will print it here. See qualifications as you may qualify. Also, to qualify the home must be closed by Nov 30, 2009, so that leaves only a few weeks to buy your home and close it and take advantage of this credit if it is not extended.
You may have noticed that there aren't as many new postings of communities as in the past few years. The economy has
certainly affected the homebuilders and there are fewer adult communities being built. Also, there were so many
built a few years ago that the inventories still remain high. However, improvement in inventories is starting to
happen.
Once they are depleted and things improve, you will see more communities being built again. But this will probably not happen for a couple of years. We continue to post new communities as we find them and despite the economy, there are still many areas showing growth. Right now you will
see huge discounts on inventory homes and low interest rates depending on the area. How long this scenario continues no one knows. Some areas have shown price increases. You need to check with your local Realtor.
Also, the JD Power Awards for 2009 have come out. Some things noted by JD Power are that the customer service and
quality of construction for new home communities has improved substantially in the past 2 years. The developers are trying to
compete for the fewer buyers out there with better service and quality. In this economic climate, customer service has become extremely important. This should always be the case, however, it has taken a recession to make the buying environment better for you, the customer. You can see the list of
winners of awards here JD Power Awards by Market
The upbeat market continues and interest rates remain low.
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Real Estate Update: August 2009
The best month for Realtors is usually August and it is that way this August. People are frantically trying to find
their perfect home before winter sets in. Upbeat remarks from high people in the government have fueled this recent
desire to buy and sell. Homes sales have risen this summer and the tax credit of $8000 is said to have helped. But
when the credit goes away in October, what will happen. It seems to me that we will need the credit in October more than
we needed it this summer. Not everyone is so optimistic. Has the picture changed. Nothing changes unless there is
some fundamental change taking place.
It feels good to have this little burst of energy and excitement. It feels like the good ole days. There is
no doubt that there are fantastic buys out there and our communities are at market lows as well as interest rates.
So buying now can't hurt much. (Check with local Realtors.) But try to get a good deal. Ask if there are incentives. Most communities do not want to
drop their prices but they do offer incentives. The prices have been set after much thorough research and are
deemed to be accurate.
But there are risks and dangers--many experts warn we are not out of trouble yet. They can't even agree if we have
found the bottom of the housing market. Some argue we won't be seeing good housing markets for another ten years.
So do we want to wait another ten years to make more money on our home. I think not. So if you have been
thinking of selling a home and buying your retirement home, now may be as good a time as any to do that.
At least if you get your home
sold, you may be able to make up the loss in getting a good deal on your retirement home. But this decision is
yours to make. Something in the air tells me it is not just the tax credit or the hopeful remarks of our
leaders--it is a feeling of "I just can't
wait any longer to make a change." Maybe it is the combination of all these things put together. I hope I am right
and this little boom continues for awhile.
What type of retirement home should you buy. Well, if you are in your 50's with no children or grown children, an
active adult community may be your choice. If you are in your 70's, an independent, continuing care or assisted
living community may be your choice. If your are undecided, a rental or resort community may be a good idea. Type of housing
also enters this picture--site built homes, manufactured homes, RV homes, mobile homes, apartment homes communities are the main
choices and are all represented on our site.
Where to live is important. Country or city. Upscale or economical. You can only make these decisions when you have
information. We hope our site provides some information to help you in the process. Thank you for visiting.
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Real Estate Update: February 2009
It's 09 already. Since the first of the year, we learned that the banks have been holding back on releasing many foreclosures for fear of causing a further fall in prices. In that case, the banks would take even more losses. People forget that banks are run to make a profit. What will happen to prices when they finally do release more of them--will the government have a plan to stave off falling prices. We are waiting to hear.
We've learned that Florida's prices have fallen in some areas as much as 50% already. This means Florida is "on sale." I noticed a tiny uptick in Florida prices generally recently since prices have gotten so appealing and this is a popular second-home state. Is it a good time to buy--you must make that personal decision. It will be different for everyone. It's a great time with lowest interest rates in decades and lower prices. But will prices drop more. That is the million dollar question and we don't have a crystal ball.
We've learned that some areas haven't been affected much at all and their prices remain stable, and in some cases, have appreciated a bit. Now even what neighborhood you live in can determine how far your prices have fallen. In-demand
neighborhoods may not be affected at all and even show appreciation.
Our communities have adjusted their prices (lowered them in most cases) and are making amazing offers such as paying closing costs, lowered interest rates, no payments for a year, offering free upgrades etc. These used to be occasional and now are standard with many communities. I never
thought I would see it this bad--they are putting homes for sale as if they were mattress sales--every holiday or any reason for having a sale, they will do it. Communities have marketing programs and seminars by special guests to help you sell your home since that is the major roadblock to buying. Contact your favorite community to see if they have these educational programs.
Many large builders have sustained horrible losses through no fault of theirs. They have held back starting new projects. Makes sense. That said, we continue to add new communities
to our listings as there are still plenty of new ones. So things aren't all bad, and hopefully will never get so bad we have no new communities and only desperate sellers. That would be bad.
If you have a home to sell, price it right. Staging also helps to sell a home. From my experience, if a home shows well it has the best chance. The cleanest homes always sell first. Sure, you may not get the price you wanted in 05 (many prices of our communities have been dropped to 04 levels), but if you purchase again, you may be able to make up some of the loss on the lowered prices of your new home.
Some areas have not lost money, as I said. In-demand neighborhoods, but also certain states, such as Texas where prices remained stable (and now may be moving up a bit)
and rural areas--all areas not affected by the recent high
appreciation of prices. If you like living in the country, the rural areas should hold their prices better in years ahead. See our new article
"Texas Hill Country--what is it like."
Interesting information on Texas living from one of our community owners of a Texas RV park. The states hit hardest for falling home prices are Florida especially Tampa area, Arizona especially Las Vegas and California especially southern. Recently, Florida and California have increased buyer interest due to some of the incredible bargains. But only time will tell if there are more bargains to come. Was it a bottom out in December 08 or is there more misery to come next year. Some experts say to sell this year as it could get worse--but that is not my advice--information only. And, of course, as I repeat many times, depends on your local market. In this market, we can only say You must make your own decisions based on your own personal situation and from advice of local professionals. I can advise you if you are buying into one of our communities, ask about any offers they may be able to throw into the deal. Sometimes you've got to ask to receive. It's a very strong buyer's market. Real Estate Update: December 2008 Real Estate Update Real Estate Update Real Estate Update Real Estate I think the most important topic we can talk about now is prices.Inventories of unsold homes continue to pile up. This is dropping prices in many markets. In some cases people need to get sold so badly, they are doing unheard of price drops. This, of course, hurts new home community sales. Therefore, there is some cutting back on building new communities (but depends on the market you are in). Cutting back for a time on building new homes will help to get the market stabilized sooner by not adding to the inventory of unsold homes. Some areas are not as affected so you need to check prices in the local market.I was just checking California, a state I know well, and, although many of the high-priced homes are not dropping price as they should,since there are huge inventories of high-priced homes for sale, the lower-priced homes, such as mobile and manufactured, are dropping price a lot. Also, medium-priced homes are showing drastic price drops by their owners. It seems it is the only way for some seniors to get moved.If they have large amounts of equity or own their home completely, they can more easily afford to drop the price to get sold. In many cases, these senior homes are sold including the furniture! I don't recommend to sellers to drop price drastically as it is a desperate measure notguaranteed to work. Your home may still just sit there unsold. (Of course, if the market warrants a price drop, I definitely recommend it in this strong buyers market, but check with your local Realtor as it depends on your market.)This works best if you have a very desirable home otherwise. Then someone will want to buy it for the home itself and not be able to resist the huge price drop. When you sell your home, it becomes a comparable for the next homeowner who wants to sell their home. Your former neighbors certainly don't appreciate it if you drop your homeprice and thereby depreciate the entire neighborhood. If this is arare case, it can be so stated by the real estate appraiser and calleda desperate sale. But if there is a trend, the neighborhood is devalued. Of course, sometimesYou are just desperate to get sold and have no choice. Back to California and price decreases. In one county, Santa Cruz County,located right on the Pacific ocean, is a very desirable place for retirees and also very expensive. Most single-family homes are priced upwards from $500,000. I don't know the median price but I know the area. However, if you look for a mobile home, you can find some very nice ones in quiet over 55 parks for $100,000 plus or minus. Thisrequires a small down payment and a mortgage payment around $1,000/month.This is an affordable price in an otherwise unaffordable area. Also, buying into a mobile home community that is owned by the residents gives the most long-term securityfor your investment. If you always wanted to live in Californiabut thought you could not afford it, now is your chance. There are many very nice quiet resident-owned mobile home parks in Santa Cruz county and the inventoriesare very high now. I believe this same scenario applies to other troubled statesas well such as Florida or Nevada. Now is not the time to not look for your retirement home or second home. Over 55 communities are quiet, usually gated, with luxury amenities, and many are now very affordable from mobile homes, manufactured homes, single-family homes, condos and more. If you can afford an expensive home, you can still negotiate in this strong buyers market, but the price drops aren't as drastic so finding that great deal requires a little more looking. I guess these owners can afford to hold on a little while longer. Will there continue to be price drops. It looks like we still have room for drops in the upper end market but the lower end sure looks good right now andstill might get even better for buyers in some markets. In our new home communities, check the year-end inventory sales. There are some excellent specials in pricing going on now til the end of the year. These communities have price adjustments to remain competitive but their year-end sales to clear inventory, are even better in some cases. Real Estate Update: October 2008 What a difference a month can make. It seems the main question on seniors minds is their retirement and if and when that can happen. The recent turn of events in the economy has impacted future retirees' 401K retirement savings and equity in their homes. They do not have as much as they thought they would to retire. If you feel you would like more to afford the extras in retirement, then you may need to work a little longer. However, with increasing lifespans, as experts predict, this may not be so unrealistic. You can retire but you may have to make some adjustments, including mental ones. We have all now discovered, thankfully, that our homes are not stock portfolios--up one day and down the next--our home is a long term investment and forced savings--this is the traditional way of viewing our homes and we must return to these traditional values. The equity of our homes has gone down in the short term--we have to consider any investment in a home, a long-term one. If you will only be in a home a short time, you may need to considerrenting instead. But over the long term, a home is still a great investment and provides intangibles like security. Things have changed. Slowly we are becoming realistic--there just simply are too many homes on the market and not enough buyers for them. Where will the buyers come from. Immigration is down, there is uncertainty, there is instability in pricing and there is tight credit. None of this favorsthe re-balancing of the market soon. Therefore, do not plan on having that extra windfall as would have been the case if you had sold in 2005. Be realistic. Have an updated market analysis to see what the value is of your home in today's market. Find out what the value of your home was in 2001 as some experts say we are still heading that way before we reach bottom and that isn't even for certain. (Please check with local Realtors as this depends on your local market. Some areas are worse off than othersdepending on if they were overinflated.) Any good Realtor would be happy to do this for you without charge. Take a look at your investment savings--and your timeline. Do not be over optimistic anymore. Re-adjust your thinking--and your portfolio. Again, return to traditional values--do not be overinvested in stocks that are more risky investments when you are reaching retirement age--go into more secure investments with less risk (see your financial planner for advice). You have lost money--try to make it up in other ways. In 2000 when my husband was retiring (bad timing) we lost a lot of money in our stock portfolio when the market crashed and learned the hard way that we had too much money in stocks with too much risk for our ages. This was money we have never been able to make up entirely--lost money--and that is what is happening today--but we have survived--we just know better now and have not been caught as much in the recent crisis. Today, of course, is different because the crisis is not of your making and it doesn't seem fair--it isn't fair. I know we can all pick up the pieces and make something worthwhile out of this mess--we have no choice. Pay off the credit cards (statistics show people are beginning to do this more earnestly)--this is the best thing to do and return to old values. Make realistic adjustments based on what you have today. You may want to put more focus on how to have an income in retirement--do you have a hobby you can turn into making money--what part-time jobs could you do that would be enjoyable--a Plan B. How much income can you realistically earn from safe investments. Can you still retire--yes, you must at some point--you just have to plan a little bit harder, be realistic and then move on. See our new
Retirement Planning Checklist
Please do not consider any of the above opinion or advice. Seek the advice of qualified professionals in real estate and financial planning. Real Estate Update: September 2008 This summer real estate market 08 is fast coming to an end. A new season is upon us. Early in the year there was talk that prices would continue to drop in some areas and that there wouldbe another bigger drop in prices toward the end of the year. It's important to watch this and see if it happens. Lately, I have noticed some increased traffic to my Florida page, a good sign. If prices are getting low enough,and there are some fabulous buys and offers out there right now in Florida, it may be starting to tempt buyers back into the market. This is what I am waiting to see. This is what will bring them back. Buyers are smart--they will enter when they sense the bottom. But for right now, let's wait and see. Florida, even in this hurricane season,is still the hottest retirement market. Let's watch it. You will hear Realtors saying now is a great time to buy. In a sensethat is true because it is true that interest rates are low and so are prices. But buyers are still hesitant, home sales are still slow, and inventories remain high. In some areas, we have seen price drops back to 2004 rates.It is a very local thing so check with the experts in the area you are interested in. Retirees have some advantages because many retirement communities are built further out in the country where the price drops may be the greatest. However, in this age of high gas prices, make sure you take this into consideration. If you are truly retired, it may not be a concern to you. The retiree lifestyle is very different from the working lifestyle. There are ways to cut back on expenditures. Having things close at hand, however, will certainly help to cut back on gasoline expenditure. So if you are thinking of taking a new look at what is available now in retirement communities, here are some tips: 1) Find a good agent in the area you are interested in and one who specializes in retirement communities, if possible. Use the agent's knowledge about areas, prices, trends and the communities. 2) Even if you are looking at new retirement communities of homebuilders, take your agentwith you to negotiate for you. Do not sign the guest book if you go by yourself to see the model homes, but excuse it by saying you are working with your Realtor and will come back with them. This way you will have someone negotiating for you if that is what you want. 3) Don't automatically go with the builders lender, but check with other lenders to find the best deal. Some banks have special programs now as well. 4) Know what it is you want to buy before you list your home so that you will know how much you can discount your home if you must when you sell. If you lose some money on your sale, you may be able to make up that loss when you buy. By seeing what is available, you will have a better idea if this is a possibility. Real Estate Update Real Estate Update Real Estate Update Real Estate Real Estate Update: August 2008 My friends had a short-term job transfer so they rented their home out while away. Now the tenant has moved out and my friends called me with a lot of questions. A lot of questions. Let's talk about being a landlord. In the current market, many people are renting out their old home and being a first-time landlord. If you are not a professional, you are in for a surprise. Landlording is a lot trickier than you could ever imagine. There are many laws associated with property management, and it is crucial that you know them. I highly suggest you consider hiring a property manager from a reputable company. Even then you must be on top of what they are doing because you are the owner of the property. If you intend to rent your property out, you need to do some reading and get familiar with the property management laws in your state. Having been a property manager for ten years, I could go on and on about this subject but we do not have time or space here. Real Estate Update Real Estate Update Real Estate Update Real Estate Here are some crucial areas: The application: Have the prospect fill out the application form completely and thoroughly. How they fill it out can tip you off to what kind of tenant they will be. Did they leave out the part about who their last landlord was. Checking the credit report is the number one essential. If a person has a good credit report, they don't want to mess it up with an eviction. Call the previous landlord or two and ask if the tenant paid rent on time and kept the property in good condition. The movein: Do not accept a personal check for the move-in rent and deposit. Get a cashier's check or cash. Do a walk through with the tenant noting existing damages and condition of the property. You will then use this when the tenant moves out as proof of the property's condition at move-in. The monthly payment: If the tenant is late, you must send them a 3-day notice to quit the property even if they eventually pay. This will enable you to get the tenant out sooner if you serve a notice and they don't pay. The exit: This is the highest priority--the tenant must give you a 30 day notice of his moving out in writing--verbal notices do not hold up in court. Then you must know the time limit given for you to return the deposit. If you do not return the deposit, you still must send a letter stating why and amounts withheld with the reason. Also, know if your state requires that you must pay interest on the held deposit. Property management laws vary by state. This is a very brief summary of some of the more important laws, however, there are many many more. Seek advice from a real estate attorney or property management company if you intend to rent your old property. Also, another pitfall is buying another home before you have your old home rented or sold. The times it takes to rent or sell have increased to great lengths in most areas. You don't want to be stuck paying the mortgage of more than one property--unless you can afford to do this. Also, remember you must have lived in the property 2 years out of the last five prior to selling for tax benefits if you plan on eventually selling (please verify with accountant or attorney). Renting out your old property can be a good way to get moved to a new property and best done when the rent will cover your mortgage payment. If you get stuck, seek the advice of local Realtors, attorneys and property managers as to what the market is like in your area and if renting is a good way to go. We do not give advice on this website--only information. The above is only a general idea of property management. There are many more laws to be aware of. Retirement communities, like the general market, continue to have slow sales. WCI communities, builder of upscale communities, have filed Chapter 11 August 4. The information number is 800-924-1890. We recently reported Levitt and Sons having filed Chapter 11. We hope that these builders are the exception and will have success in reorganizing their companies. We hope that this real estate market improves substantially in the future. We will not guess when and it is a very local thing. There are some areas that have shown improvement but some areas continue to struggle. Real Estate Update Real Estate Update Real Estate Update Real Estate Real Estate Update: May 2008 The recent lowering of interest rates at every Fed meeting hasn't seemed to help the real estate market. In the past, this was a sure fix to stagnant markets but it isn't working that way anymore. Foreclosures are increasing worse than ever, people cannot sell their homes unless they drastically lower their expectations, and short sales and foreclosure opportunities are rampant. Ever so often you get the feeling something has fundamentally changed in our society--and that time I feelis now. People have become aware awakened and are smelling the coffee--whether it is a good or bad aroma I'm not sure. We are a nation saturated with debt Our society lives on credit We have no savings We fear for social security and medicare They tell us our children and grandchildren will suffer We have no good energy policy for the future There are too many homes on the market and not enough buyers for them Foreclosure rates continue to rise due to the subprime market crisis but we knew all these things didn't we..now The Fed is in a quandary and is experimenting to find solutions--lowering interest rates is not the simple solution as in the past. Real Estate Update Real Estate Update Real Estate Update Real Estate How we are changing: We are pulling back on spending -- even though we are told it will not help the economy We are cutting back on our use of energy -- as prices soar We are starting to save -- for an unclear future We are paying off our credit card debt -- as fast as we can We are not traveling, buying unnecessary items, furnishing our homes like before How does this affect your home buying decisions? You may not get your home sold at the price you want in some areas -- those same areas are good places to buy You may sell your home and move to a less expensive area -- to pay off debt and help your children pay off theirs -- You may rent -- You may pay off credit cards before buying any luxury items You may take retirement savings out because you have to You may start a savings account for your grandchildren instead of having some things you envisioned in retirement And out of this may come creative solutions--as only Americans can create--doing the same things in the same way may not work anymore -- people are retiring to RV's, cabins, boats..creative solutions to their problem -- Retirement communities should be investigated as a good choice as they are usually priced a little better than the general market (but check with your Realtor)In fact, there are some incredible buys out there in active adult communities--check this website thoroughly and go directly to the community to see what their latest price offerings and incentives are. You may start thinking about what is most important in life and making simpler choices. As I said, I am not sure if the aroma is good or bad--maybe just a little of both. (This article is information only and not advice--please consult with your real estate and financial advisers for advice.)
Real Estate Update Real Estate Update Real Estate Update Real Estate Real Estate Update: April 2008 The real estate season is upon us beginning with April in most areas of the country. How is your local real estate market doing. You can easily find out by checking with a local Realtor and having amarket analysis of your home. If the Realtor tells you the market is still slow, things aren't picking up, then this will give you a clue to what your retirement market in another state is doing as well. Most retirement areas of the South and West rely on how the homes are selling somewhere else such as the Northeast and Midwest. Where does the market come from for Myrtle Beach, for an example. People who purchase in Myrtle Beach have usually sold a home (or have a second home) in Ohio, for instance. So if you live in Ohio, and the market is sluggish, then the retirement areas of Myrtle Beach are probably sluggish too. (Not to mention all the condominiums and backlogged inventory there from over zealous speculators.) However, if things are starting to move in Ohio, you'd better check Myrtle Beachnow. Don't wait for the "bottom" because it will not shout out to you "this is the bottom--buy now." Purchasers of Florida homes mainly come from the Midwest and the Northeast. Purchasers of homes in Arizona come mainly from the Midwest. Californians move to Nevada or the Northwest. So how are those markets doing. Find out where the market comes from for the area you want to retire to, and how it is doing, to know when things might change. That said, be aware that many experts predict prices may go lower still. If you get your homesold, you may wish to rent for a year to see how things go. On the other hand, it is now a buyers market and there are some very good "deals" out there. So what should you do. Only youcan answer that question. It is a matter of personal lifestyle and financial goals. There are lovely senior apartment complexes for over 55. While a rent increase may happen every year instead of a consistent payment on a fixed mortgage, renting has other cost savings and one big advantage: you can try the neighborhood out to see if you like it. I did this and it worked well but it was tiring moving all our stuff from one place to another when we finally didpurchase. I wish I knew an easier way. I just don't want to give up things I have accumulated over the years and have special meaning for me. The Fed continues to drop interest rates. This is mostly to help out those who are in danger of losing their homes when variable rate mortgages reset. This is another tempting factor to buy a home now. If you don't want to pay all cash for your new retirement home, these rates are fabulous right now. It is predicted there will be further interest rate cuts by the Fed. After that, we will have to look again at the real estate market. The real estate year is upon us and time for making some decisions if this is your year to buy your retirement home. Please consult with your financial advisers. This website is for information only and not advice.
Real Estate Update Real Estate Update Real Estate Update Real Estate Real Estate Update: March 2008 The recent theme of "change" in the presidential debates brings up the realization that no matter who wins the presidential race, change appears to be something America wants and so is coming. And this goes for the real estate market as well as the country. Note the following trends: - Interest Rates are dropping and the Federal Reserve Chairman has indicated this will continue to happen if necessary.
- The baby boomers are retiring and migrating south and west
- the baby boomers in retirement will not spend as much and affect lower prices.
If you are ready to move and need to sell your long-time home, experts say before late 2008 may be the best time to do it. (Please make your own decisions about when to sell by consulting local Realtors and Financial planners and doing your own investigations--this website is for information only and not advice.) After 2008, prices of homes may drop further, according to some experts due to further foreclosures, making even more properties come onto the market because of reset of loan rates. We certainly didn't need this crisis at a time when boomers want to sell their homes. (It is possible that when you buy, the new home may have also dropped in price so you can make it up this way.) If you are lucky and get your home sold, resort areas may be the best places to buy (this is where the boomers are moving.) Other areas would be in keeping with recent trends in migration: Besides booming resort areas,(some resort areas,however, have been overbuilt and are currently going through a slow period, but over the long term, the outlook is more favorable for resort areas) look into small towns outside the suburbs, college towns, quaint and scenic communities, and sophisticated urban centers. See our new page about Retirement Resorts. We will feature more of the above types of communities in our search for retirement places (please note our recent FOCUS series featuring states like Tennessee and Georgia known for these types of towns.) Overvalued areas, near-term, according to experts, continue to decline in areas like California, southern Florida and the Northeast as a result of the overbuilding and recent crisis. The trend is to moving toward warm areas as the most popular states for retirement still tend to be California, Florida, and Arizona. California, in addition, is culturally appealing to boomers who want a more relaxed environment. Other areas are the southeast and southwest. Should you buy now--that is the tricky question--we will have to wait and see to know the answer if this was the right time to buy, (no one knows the future of real estate--please consult with real estate professionals) but if you do buy now and can hold on for a long term, the above-mentioned areas may be best choices to consider to increase chances of holding their values over the long term. Most retirement communities have adjusted or will be adjusting their prices for the spring market but be cautious and buy right and ask about any incentives they may have. Discovery tours at retirement communities seem more abundant than ever. Book your tour now before the summer rush. (Please consult with your financial advisors, local Realtors and other professionals--this website is information only and not advice or even opinion.) Real Estate Update Real Estate Update Real Estate Update Real Estate Real Estate Update: February 2008: February is not considered a "hot" buying month for real estate but it is a good month for those looking for bargains. It isn't quite spring when things get going and yet homes that haven't sold over winter may be further reduced by anxious sellers. I know at my retirement community there are some amazing bargains in this pre-spring time frame. Seniors do not have to move at any special time of year so they should take advantage of these slow months and the incentives offered by retirement communities now. Perhaps you have considered buying a second home condo or getaway cottage. In addition to single-family homes, many retirement communities offer a condominium option which is perfect for a second home. Some are in resort areas, and the community may have an option to allow you to rent out your condo when you are not occupying it. We will have more information on second homes in the future. This is a different type of property from age-restricted properties but still of great interest to many retirees and offer another option in retirement. For this reason, we are interested in providing information on this to our visitors. Meanwhile, here is a book on the subject if you are interested in second homes: "How a Second Home Can be your Best Investment" by Tom Kelly with economist John Tuccillo. We have seen some outstanding incentives being offered at over 55 retirement communities but no telling how long these will last so this is a good time to look around to see what bargains may be out there. In most cases, prices have been dropped. Will prices continue to drop is the major question. No one knows the future. There have been 2 interest rate drops by the Federal Reserve in January but still no major effect. Buyers can't buy at retirement communities until their homes have sold. Still there is the perception prices may drop further so buyers are holding off. But baby boomer retiree sellers can often wait so they are not anxious to drop their prices further on their long-time home to purchase retirement homes. Of course, this is not good for builders of retirement communities and is causing alot of strife for many of them. As I have mentioned before, these affects are worse in some areas than others so please check with the local Realtors as to local real estate conditions. We may need further legislation to help out in our current real estate crisis especially where the upper priced homes are concerned. These are usually the homes that retirees need to sell in order to purchase into a retirement community. There has been more marketing of Discovery Tours offered by retirement communities--offering to give you 2 or 3 nights at discounted rates in nearby hotels or on the property to view the community. This is a good time to take that exploratory trip to that town you are curious about. Hook up with a retirement community that has a deal too good to miss and go visit now. Simply let the retirement community know you are interested and they will be happy to send you information on any deals for visitors to their community. Tell a retirement community about your own unique situation and maybe they can help if you are interested in buying in their community. They may have some creative solutions you don't know about to help you get moved. Check back in March for another real estate update.
Real Estate Update Real Estate Update Real Estate Update Real Estate Hello and Happy New Year: January 2008 Real Estate Update: We hope you had a great year and this year will be even better. I know for retirees some just scrape by every month and others should scrape by each month keeping in mind to save their nest egg and not spend it away. There are things that retirees just have to do differently. Before I was "retired" I would buy just what I wanted with little regard to how much it cost. For me if a party was coming up and I had to have something new, I would simply go out and buy whatever that was at the asking price. I never bothered with sales. Now that I am retired--sort of, I am beginning to notice sales like the one I came across the day before Christmas. Yep, I needed a new outfit. I thought I would just pick up a new turtle neck sweater. When I got to the store they were having a 60% off sale. All the clothes I had seen the previous day there were now more than half off. I couldn't believe it. The same sweater selling for $60 was now only $26. This was definitely an attention getter and eye opener. These were real bargains and I coudn't resist. I bought a whole new outfit and more. The same thing can happen in the real estate housing market. There are real estate bargains out there. Real estate prices are dropping. You just have to know about them and say "wow." Buyers of new homes are waiting because they think prices may come down more. So until the homebuyers say "wow," the housing inventories may continue to build up. If you want to buy now, there are desperate sellers and there are discounts at retirement communities--not all but definitely some. It begins to get very tempting indeed. If you can get a real bargain and ride out the current market til prices go up again, maybe this is a good time to buy after all. Not knowing the future, I can't say for sure but there are some good bargains out there that make you want to buy now. I just got a marketing letter in the mail from Summer Glen Retirement Community in Ocala, Florida, and it made sense. It was selling well because of their discounts which they say make for an excellent value right now. Up to a $60,000 discount on homes and you can purchase now and have up to one year to build. Some parts of Florida home prices are falling up to 20% right now from their highs. Will they fall more. If you think so then look for a bargain that you think you will feel comfortable with. Of course, it continues to be a problem getting your current home sold. That is why home prices are falling--fewer buyers and more inventory. This scenario continues. There are retirement communities that have special offers of helping you sell your home and if it doesn't sell, you don't have to go through with the new home purchase at their community. How generous and how obvious that some communities are desperate all to a buyer's advantage. For those who have sold their current homes and can put down a good size downpayment and have good credit, the national interest rates have come down to an average 6.l7 according to Freddie Mac. Of course, many retirees can buy all cash from their home equity, and do not even worry about the interest rate issues. But the lower interest rate will help to increase the number of buyers for your home. Another thing to compare is what rents are. As rents continue to go up, since many people are choosing to rent rather than buy now, buyers will eventually decide it is better to buy. But, again, they have to sell to buy or rent. So it's a vicious circle we are in. We need to break the cycle to restore balance in the market. Another real estate tip for anyone: Check your property taxes. If your home has lost considerable value, you may be able to reduce your property taxes. Call your County office. A financial website I like is www.dolans.com for tips on how to do this. As spring approaches, more buyers tend to be out there looking so chances to sell your home increase. See our tips on how to sell your home. Be sure to be ready with an up-to-the-minute market analysis from your local Realtors to make sure you are priced right. For buyers, the winter season is a good time to find those desperate sellers who didn't get sold over the summer and fall. Come back next month to read about the continuing drama of this current record-breaking real estate market Real Estate Update Real Estate Update Real Estate Update Real Estate Real Estate Update: December 2007 Real Estate Market Update 12/07 - On Thursday, Nov 29, Bernanke, Chairman of the Federal Reserve, hinted in a speech that there may be another rate cut at the next meeting. I think it will happen but we need to wait for the actual meeting, Dec. 11, to know for sure. 2008 may be worse than 2007 in real estate sales for builders, according to some industry leaders such as Centex and D R Horton. These are opinions of some, but there is no way to predict the future of real estate for everyone accurately so you must make your own investigation. Inventory continues to be the main problem. There will be more inventory in 2008 as there continues to be more foreclosures. Other factors hurting the market is the perception buyers have that prices of homes will fall further and they are waiting to buy. If you have to sell your major home, you may have to sell it at 2004 prices, if you can even get it sold at that price. Again, some markets are better than others, so check with your local Realtor and get a thorough market analysis (which a Realtor will give you at no cost), as each area is different and we do not give advice or opinion. The worse hit areas for inventory levels, according to a recent report, are California, Florida and Ohio. These are areas where there were the most investment sales for the sole purpose of reselling at a profit. When investors couldn't resell them as the market changed, they dumped them, and now everyone is paying the price for this reckless buying. In addition, more inventory is piling up from those walking away from homes that they cannot afford any longer due to rising house payments. Wish I could be more cheery. If you need to sell, make sure your home is not overpriced in this market, seek professional, local advice, and see my Tips on How to Sell Your Home. The best markets in real estate right now are the first-time homebuyers. They have some cash, are in the lower price ranges, and need a home. Unfortunately, these are not the buyers for people who want to sell their long-term homes to buy a retirement home. Usually retiree's homes are in a higher price range and buyers are few because they, in turn, need to get their home sold first. That is the main reason retirement communities sales are down. Buyers are canceling when they can't get their homes sold. It is a domino effect. However, the Federal Reserve says they will respond to any needs of the housing market if the situation gets worse. Right now, things are in line with my previous updates. Even though you may not get as much for your home (depending on your local market conditions) as you would have in the two previous years, remember that if you purchase again, you may also get a better price on the new home to make up for the loss. At retirement communities, incentives are strong and prices have been reduced at many communities. Many of the prices on my website have not been changed because there are so many its hard to keep up with it so please check with the builder for current prices and additional incentives. Year end incentives are very strong. Existing new homes at many retirement communities are further reduced in price for those who can close before year-end. Builders of retirement communities say its a great time to buy but do check with your local Realtors for advice and opinion. Rentals at retirement communities probably won't see the same price reductions because there is good demand. People who aren't ready to buy, hoping for further price reductions, which is the current mindset, will rent. Until the mindset changes, rentals remain strong. A word about Levitt and Sons filing Chapter 11. This is one of the major builders, although smaller than some. What an unfortunate thing--it has caused anxiety in those who purchased homes that were not yet finished being built. Clubhouses and amenities may not get built. Everything is put on hold pending hearing from the court, according to their rep. There is an information number on their website if you have questions. The only way you know for sure, when you buy a new home in any community, that you will receive an amenity is that it has already been built when you purchase. See my condo tips. Please come back for our update in January, after the next Fed meeting in December, as we continue to watch the real estate market.
Real Estate Update Real Estate Update Real Estate Update Real Estate Real Estate Update: November 2007 At the most recent Fed Reserve meeting, interest rates were cut 1/4 point. This is good for housing. Some retirement communities are reporting they have loans available at lower interest rates now. Also, prices have been rolled back at many communities. R. Michael Curtin, Sr. Vice President of Marketing and Sales, WCI Communities, says they have rolled back prices to December 2003 levels (right before the rise) on selected homes and communities and WCI has "plenty of funds for mortgage purchases...and many different programs to fit your particular needs." If you are ready to buy now, check the prices and offerings at your favorite communities. They may be more favorable. Also, continue to look for outstanding year-end incentives. Real Estate news has been so negative in the past year and a half. Hopefully, we will hear more encouraging news in the future as reported by WCI. Have a happy Thanksgiving and look for Holiday offerings and open houses from your favorite communities.
Real Estate Update Real Estate Update Real Estate Update Real Estate Real Estate Update: October 2007 To continue our real estate update on the Sept 18 meeting of the Federal Reserve, we are glad to report that the main interest rate was dropped--not just a quarter point but a whole half percentage point! This should make it easier for buyers to buy and bring more buyers into the market. But now the question, will it help enough. The problem of too few buyers and too much inventory continues. So far, we have not seen fabulous results from interest rate drops. These things can take time, however. The prediction is that there may be further interest rate drops but that is not certain. We hope this situation we are currently in can be helped by the Federal Reserve's future decisions. Check back with our real estate update. One of the problems is inventory keeps piling up. In our area there is a year and a half backlog. That means it will be a year and a half before we can catch up with inventory sold. There is also the fear that instead of catching up, this inventory will continue to pile up. This is the greatest fear now. Right now, the only thing that works may be price. Yours may need to be the best-priced home out there of your comparable homes. Now that I say that I have to qualify it and say to check with your local Realtor as this may not be true for your area or price range. Yes, I can't be too upbeat on the overall situation. However, The silver lining is this: It is a great time to purchase if you are a buyer. Interest rates are low, many sellers are wanting for an offer and often very negotiable, there are a lot of homes to choose from, and often yours is the only offer. Retirement communities are also very negotiable. There are often year-end incentives so as to make the year's sales look good, but this year there are many more price reductions in communities which makes it an excellent time to buy. Check back for a real estate update on year end offers. If you have sold your home and still don't want to buy yet because you think prices will go lower, you can rent for awhile. Most retirement communities have rentals available. Of course, this means 2 moves and it may be too hard for you. That is a decision you have to make. However, I often recommend that you rent for awhile in the community and area you like, to make sure you like it before purchasing. Other options are senior rental apartment communities.
Search here for Senior Apartment Rentals
Assisted living is often primarily a regular apartment rental retirement community with assistance available if you want it.
See Assisted Living Communities
You have heard that some builders have been losing money--often because they overpurchased land in the last couple of years--so now they are anxious for offers and may lower prices in the community of your choice. I have seen many of these lower prices and report them on my Blog Page or real estate update.
There is one other thing I feel I should bring up on this real estate update. If you are a seller, when an offer comes in, make sure you notice who the buyer is getting their loan from. It is advisable to check this out because many lenders are going out of business and transactions are falling through because of this. For buyers, it is preferable to get your loan from direct lenders for the best chance of getting your deal to close. Some of these are Bank of America, Wells Fargo, Weichert Realtors, Sun Trust,etc. Ask if they are a direct lender to find out. This is information only and not advice. Please shop your own loans or check with your local Realtor for information on choosing the best lenders or mortgage brokers, if you prefer, in your area.
How do you get your home sold in the first place, See my
How to Sell Your Home Tips
Real Estate Update Real Estate Update Real Estate Update Real Estate Real Estate Update: Aug 2007 Housing reports came out today 8/24--and it had a positive upbeat..however, it depends on where you live. Check with your local Realtor to know how your area is doing. It was reported that while this year home sales were down, nationally, July showed a rise from June. So the sales were unexpectedly better than forecasted by some experts. If interest rates come down (not predicting they will), be ready for more of a burst of buying (my opinion but always check with your local Realtor) and have your home priced right if you are anxious to sell. Timing is everything and if we have a little improvement and then interest rates drop, we may get a burst. If you have a home to sell in one of the following areas, you may be having some problems selling or getting your price: Florida, California, Wash., DC, Arizona. The problem is inventory. These areas had a lot of speculative buying in previous 2 years and now have built-up inventories of homes that won't sell. Until sellers are more realistic and list their homes at prices that will sell, inventory may continue to pile up. How do you know if it is priced right? These are signs: Always have a comparative market analysis done by a Realtor before pricing your home. Look at what homes are selling for more than what they are listed for. Be sure to follow my Tips to Sell Your Home.
Go Here (2nd article)
Increased foreclosures continue due to speculative investments and risky loans in previous years.
Low mortgage rates have not worked to bring in more buyers. They are still hesitant.
Getting financing just got harder for borderline buyers.
Flat or negative appreciation continues in most areas.
It takes longer to sell a home than previous to 2006. Inventory continues to build up.
Retirement Communities Real Estate Update: Slowed home sales just as in the general market. Some retirement community builders are having problems due to the increased amount of retirement communities that were built in 2006.
Also, homebuyers need to sell their homes before buying their retirement home and so sales are slow at some retirement communities.
Cancellations of buying contracts have increased at retirement communities and all housing. The increased difficulty of obtaining financing has forced the cancellation of more contracts. Many retirees, however, pay all cash and are not affected by interest rates or financing--just getting their home sold. Most upscale communities are not as much affected by financing volatility as a large percentage of buyers can pay all cash.
All of these factors characterize the current market and make it a buyer's market.
Real Estate Update: Market Watch Tip:
If you have a home to sell, the direction interest rates takes is of great importance because it affects the real estate market. Your Realtor should keep you informed along these lines especially in the current market.
The next Federal Reserve FOMC meeting is September 18, 2007. If you tune in to what the Board of Governors say when they make speeches and reported in the news media, prior to meetings, you may get hints as to what may happen at future meetings and what may happen to interest rates that affect home sales. Of course, you have to wait for the actual meeting to know for sure.
For instance, Federal Reserve Chairman Ben Bernanke gave a speech on Fri., Aug 31. Whenever he gives a talk, he is reported in the news. He didn't give a hint that interest rates would be lowered. Many were expecting that he might. He did say the Federal Reserve would step in if needed to help in the current housing crisis. This sounded to me like they would help if it was affecting the economy severely. Read the speech and come to your own conclusions or consult with your local Realtor. President Bush that same day gave a speech saying there would be some help to homeowners in danger of losing their homes through the FHA program.
Bottom Line: Let's wait to see what happens at the 9/18 meeting and come back for our next real estate update.
This real estate update is for general information only. Always check with your Realtor in your local area before making any real estate decisions.
See my Tips to Sell Your Home to Buy Your Retirement Home Part 2
Please verify all information. This website is for information only and not to be considered advice or opinion.
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